Personal Finance Myth #51

Bonds have a fixed price throughout their tenure | Vrid
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Bonds have a fixed price throughout their tenure

The value of bonds can fluctuate in the secondary market during their tenure. Several factors, including interest rates, credit ratings and market conditions, influence bond prices. 

When interest rates rise, bond prices tend to decrease and vice versa. 

If you sell bonds before maturity, you may receive more or less than your initial investment, depending on market conditions. However, if you hold until maturity, bonds typically provide the promised face value. 

Understanding bond price dynamics is crucial for you to make informed decisions and manage your bond investments effectively. Read more about bonds in our bond series.

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice or a proposal to buy or sell any assets. Please be careful and do your own research.

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